SGX Nifty October 2026 futures declined by 66 points, suggesting a bearish start for the Nifty 50.
The government has lowered the windfall gains tax on exports of diesel and aviation turbine fuel for the two-week period starting 1 October 2026, while maintaining the levy on petrol exports at its current level. The special additional excise duty, in conjunction with road and infrastructure cess, on diesel exports has been decreased to Rs 16 per litre from Rs 20 per litre, whereas the levy on ATF exports has been lowered to Rs 10.5 per litre from Rs 15 per litre. The duty on petrol exports remains fixed at Rs 0.5 per litre. The Finance Ministry announced that the current duty rates on petrol and diesel designated for domestic consumption remain unchanged. The Indian stock market will remain closed on Friday, 2 October 2026, in observance of Mahatma Gandhi Jayanti.
Institutional Flows:
On 30 September 2026, foreign portfolio investors divested shares amounting to Rs 10,148.41 crore, whereas domestic institutional investors emerged as net buyers, acquiring shares valued at Rs 11,271.73 crore in the Indian equity market, as per provisional data. Foreign Portfolio Investors divested shares amounting to Rs 45536.89 crore in September up to the 30th, 2026. This follows net cash purchases of Rs 17,366 crore in August 2026, while they were net buyers of Rs 6,731.97 crore in July 2026.
Global Markets:
Asian shares exhibited a mixed performance on Thursday, as markets in mainland China and Hong Kong remained closed for holidays. US stocks concluded the trading session on Wednesday with a mixed performance, following the release of data indicating that inflation increased less than anticipated in August, which alleviated expectations for an imminent rate hike by the Federal Reserve. However, elevated Treasury yields constrained advancements. The Dow Jones Industrial Average declined 443.87 points, or 0.86%, to 50,906.05, while the S&P 500 fell 19.30 points, or 0.25%, to 7,651.54. The Nasdaq Composite experienced an increase of 63.52 points, representing a rise of 0.24%, reaching a level of 26,861.06.
US inflation, as indicated by the Personal Consumption Expenditures price index, increased by 0.3% on a month-on-month basis in August and recorded a year-on-year rise of 3.4%. The annual increase was below expectations of 3.7%, contributing to a reduction in the likelihood of a Federal Reserve rate hike at the October meeting. Core PCE inflation increased by 3% on a year-over-year basis. Micron Technology announced a remarkable fiscal fourth-quarter revenue of $54.23 billion, alongside non-GAAP earnings of $33.42 per share.
The company has projected an adjusted EPS of $38.15 at the midpoint for the current quarter, surpassing market expectations. Its shares initially experienced an uptick in after-hours trading before retracting some of those gains. Crude oil prices experienced a decline, as Brent crude futures fell by 0.24% to $97.79 per barrel. Oil prices continued to capture the attention of investors, influenced by persistent geopolitical tensions and apprehensions regarding energy supply. Investors will turn their attention to the US nonfarm payrolls report for September, scheduled for release on Friday, as they seek additional insights into the Federal Reserve’s trajectory regarding interest rates.
Domestic Market:
The key equity benchmarks concluded the trading session lower on Wednesday, marking a third consecutive day of decline, as selling pressure was observed in the healthcare and metal sectors. The Nifty concluded its trading session beneath the 22,650 mark. Realty and banking stocks, encompassing private lenders, experienced gains that mitigated the overall downturn. Elevated crude oil prices and ongoing foreign institutional investor selling exerted pressure on market sentiment. Investors exhibited a degree of caution in response to the heightened global bond yields and prevailing geopolitical uncertainties.
Market participants are monitoring US inflation data, fluctuations in crude oil prices, and bond yields for insights into the global interest-rate outlook. The S&P BSE Sensex experienced a decrease of 48.78 points, representing a decline of 0.07%, closing at 72,480.29. The Nifty 50 index experienced a decrease of 95.75 points, reflecting a decline of 0.42%, closing at 22,620.45. Over the course of three trading sessions, the Sensex and Nifty experienced declines of 1.92% and 2.25%, respectively.
